Glendale Place is a 62-unit building in the City of Savage that provides affordable senior housing using bonds provided by the Scott County HRA and a land swap with the City of Savage. To make the project a reality County HRA bonds were sold with the city's General Obligation (G.O.) bond backing because it has no taxing authority of its own. The city's general obligation pledge lowered the borrowing rate which results in lower costs of the overall project.
Funding sources for the project include $7.495 million in HRA bonds, a $500,000 cash contribution from the HRA and interest earnings of $206,541 for a total of $8.2 million.
To pay off the bonds, the HRA is counting on rental income, contributions from the HRA general fund and reserve funding income.
There is no direct financial impact to the city, unless the project falls short of meeting projected revenues.
"This is an outstanding example of a partnership where two government jurisdictions capitalized on their own areas of expertise," said City of Savage Administrator Barry Stock.
Glendale Place includes a mix of 28 one-bedroom units, 22 one-bedroom units with dens, 10 two-bedroom units, nine two-bedroom units with dens and three large-sized units. Suggested rents will range from $720 to $1,175 per month.